ThinkGeoEnergy – Geothermal Energy News

KenGen closing $272 million fund raising for development and debt service

KenGen is about to successfully close a fund-raising campaign for up to $272 million in a shares issue, which will include participation of Public Investment Corp, a South Africa based pension fund as a new 5% stakeholder in the company.

We have been reporting about plans of Kenya Electricity Generating Company (KenGen) for fundraising for its development activities. It now seems the company has entered into a deal that could see it completed the sale of the 4.4 billion shares that were on offer during its rights issue offer in 2016, as reported by Citizen TV.

This follows news, that South African pension fund, Public Investment Corporation entered into talks with KenGen to buy the remaining 351.2 million shares that were not taken up during the offer.

The deal is valued at Sh2.3 billion, meaning KenGen has hit its initial target to raise Sh28.7 billion or around $272 million.

“KenGen wishes to advise its shareholders and the public that it has, on February 22, 2017 entered into an agreement with the Public Investment Corporation SOC Limited acting in its capacity as the authorized representative of the government employees pension fund, a South African based institutional investor, to allot ordinary shares in KenGen (equivalent to 5.33 per cent of the new issued share capital) at a price of KES 6.55 per share,” KenGen Managing Director Albert Mugo said in a notice to shareholders.

With the deal, South Africa-based Public Investment Corp. will have a stake of 5.33% in KenGen. This is though still subject to regulatory approval in Kenya.

KenGen had indicated it planned to spend Sh20.1 billion to pay off its expensive debt while the remaining Sh8.6 billion would be sunk into its ongoing projects.

KenGen has been on a capital raising agenda as it plans massive investments in energy projects.

The firm has ongoing projects in the Olkaria geothermal fields as well as plans to construct a wind park in Meru.”

Source: Citizen TV Kenya

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